NVIDIA Corporation $NVDA Stock Sold by Ninety One SA Pty Ltd

Key Points

• Ninety One SA Pty Ltd cut its NVIDIA stake by 1.3%, selling 4,400 shares in the third quarter; it still held 323,159 shares valued at about $74.2 million, its third-largest portfolio position.
• Analyst sentiment was broadly positive: the stock had a consensus “Buy” rating and a $317.57 target price, with five Strong Buy and 48 Buy ratings among analysts cited.
• NVIDIA beat quarterly estimates, reporting EPS of $2.22 versus $2.09 expected and revenue of $96.22 billion, up 105.9% year over year. The company also authorized a share-repurchase plan of up to $150 billion.

Ninety One SA Pty Ltd decreased its stake in NVIDIA Corporation (NASDAQ:NVDA - Free Report) by 1.3% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 323,159 shares of the computer hardware maker's stock after selling 4,400 shares during the period. NVIDIA comprises about 3.7% of Ninety One SA Pty Ltd's investment portfolio, making the stock its 3rd biggest position. Ninety One SA Pty Ltd's holdings in NVIDIA were worth $74,152,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also recently made changes to their positions in the company. Montgomery Financial Services LLC bought a new position in shares of NVIDIA during the 2nd quarter valued at about $28,000. Langley Wealth Management LLC purchased a new position in shares of NVIDIA during the 2nd quarter valued at about $34,000. Newton One Investments LLC purchased a new position in shares of NVIDIA during the 3rd quarter valued at about $34,000. Phillip James Consulting Co. bought a new stake in NVIDIA in the 1st quarter worth approximately $40,000. Finally, Bard Associates Inc. lifted its position in NVIDIA by 8,866.7% in the 2nd quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker's stock worth $54,000 after buying an additional 266 shares during the last quarter. Institutional investors own 65.27% of the company's stock.

Analyst Ratings Changes

Several brokerages have issued reports on NVDA. BNP Paribas Exane reaffirmed an "outperform" rating and issued a $345.00 target price on shares of NVIDIA in a research note on Monday, October 5th. Wedbush lifted their price target on shares of NVIDIA from $330.00 to $345.00 and gave the stock an "outperform" rating in a research note on Thursday, August 27th. Yorkville Ives began coverage on shares of NVIDIA in a report on Tuesday, October 6th. They issued an "outperform" rating and a $300.00 price objective for the company. Zacks Research upgraded shares of NVIDIA from a "hold" rating to a "strong-buy" rating in a report on Monday, September 21st. Finally, Melius Research cut their price objective on shares of NVIDIA from $420.00 to $315.00 and set a "buy" rating for the company in a research note on Monday, November 2nd. Five investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Buy" and a consensus target price of $317.57.

Key Headlines Impacting NVIDIA

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: NVIDIA’s underlying business remains strong: its latest reported quarter beat estimates, with revenue up 105.9% year over year. That growth may help support the stock if the controversy does not disrupt operations. Article: Jensen Huang Might Be the Biggest Wild Card for Nvidia Stock
• Positive Sentiment: The company also announced a South Korean AI-infrastructure collaboration with Rebellions and SK Telecom, extending use of NVIDIA’s NVLink platform. Article: NVIDIA, Rebellions and SK Telecom Announce Collaboration
• Neutral Sentiment: NVIDIA’s board has begun an independent investigation into reports that Huang was targeted by a foreign intelligence effort. The board said it has no reason to believe company secrets or national security were compromised; Huang says he is cooperating. The outcome remains uncertain. Article: Statement from NVIDIA Board of Directors
• Negative Sentiment: The investigation follows Huang’s admission of an affair with Alice Huang, a former executive at a company that buys NVIDIA chips, who U.S. intelligence reportedly suspects of links to Chinese intelligence. Investors are concerned about potential exposure of sensitive information, reputational damage, and complications for NVIDIA’s China business. Article: Nvidia Shares Slump on Spy Probe
• Negative Sentiment: Shareholder litigation and possible congressional scrutiny add legal and regulatory risks. Questions about Huang’s future also weigh on sentiment, as reports say NVIDIA has no clear public succession plan for its founder and long-serving CEO. Article: Nvidia’s CEO Turmoil Gives Democrats Fresh Ammunition for Oversight Article: Jensen Huang Affair Puts Nvidia’s Future at Risk

NVIDIA Trading Down 4.3%

Shares of NVDA stock opened at $178.67 on Tuesday. The stock has a market capitalization of $4.31 trillion, a PE ratio of 22.59, a P/E/G ratio of 1.54 and a beta of 2.21. NVIDIA Corporation has a 1-year low of $164.27 and a 1-year high of $243.37. The business has a 50-day moving average of $219.03 and a 200 day moving average of $204.50. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85.

NVIDIA (NASDAQ:NVDA - Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.13. The business had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. NVIDIA's revenue for the quarter was up 105.9% compared to the same quarter last year. During the same period last year, the company earned $1.05 EPS. As a group, sell-side analysts anticipate that NVIDIA Corporation will post 9.30 earnings per share for the current year.

NVIDIA Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA's dividend payout ratio is 12.64%.

NVIDIA declared that its Board of Directors has approved a stock repurchase plan on Monday, September 28th that permits the company to repurchase $150 billion in shares. This buyback authorization permits the computer hardware maker to buy up to 2.8% of its shares through open market purchases. Share buyback plans are often an indication that the company's management believes its stock is undervalued.

Insider Transactions at NVIDIA

In other news, CFO Colette Kress sold 34,918 shares of the firm's stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value of $7,648,787.90. Following the transaction, the chief financial officer owned 765,103 shares in the company, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of NVIDIA stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the completion of the transaction, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Insiders own 3.94% of the company's stock.

About NVIDIA

NVIDIA Corporation develops graphics processing units (GPUs), accelerated computing platforms and related software. Founded in 1993, the company first became widely known for GPUs used in PC gaming and professional graphics. Its technology now also supports artificial intelligence, scientific computing and other data-intensive applications.

NVIDIA's offerings include GeForce products for gaming, data-center GPUs and systems for AI workloads, and networking products that connect computing infrastructure.

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